China Dairy Economy Monthly Report February 2021
By: Date: 2021-02-28 Categories: industrynews Tags: ,
  China Dairy Economic Monthly Report February 2021

   Second issue (total 139th)
  Host:National Dairy Industry Technology System Dairy Economic Research Office
  Editor in chief:Liu Changquan and Li Shengli
  Executive Deputy Editor-in-Chief:Dou Ming
  

  Analysis of the overall situation
  1. Fresh milk market

The price of    fresh milk continues to rise, but the prices of corn and soybean meal have risen even higher
  According to the monitoring data of the Ministry of Agriculture and Rural Affairs, the price of fresh milk has increased on a weekly basis in January 2021, and has been rising for 29 consecutive weeks. The monthly average price in January was 4.25 yuan/kg, a 2.3%increase from the previous month and a 10.3%year-on-year increase. The price reached 4.27 yuan/kg in the last week, an increase of 0.2%over the previous week and an increase of 10.3%over the same period last year. The monthly average price of corn was 2.82 yuan/kg, up 7.4%month-on-month and 34.7%year-on-year; the monthly average price of soybean meal was 3.79 yuan/kg, up 9.5%month-on-month and 17.0%year-on-year. The increase in the price of feed ingredients significantly exceeded the increase in the price of raw milk.
  National Bureau of Statistics:2020 milk production is 34.4 million tons, an increase of 7.5%
  According to the analysis of the economic situation of the National Bureau of Statistics in 2020, my country’s milk (ie, fresh milk) output will be 34.4 million tons in 2020, an increase of 7.5%.
  2, dairy processing

   The national liquid milk production in 2020 will be 25,994,300 tons, a year-on-year increase of 3.28%
   According to the National Bureau of Statistics, the national liquid milk production in 2020 was 25,994,300 tons, an increase of 3.28%year-on-year, of which the December output was 2,342,800 tons, a year-on-year decrease of 2.30%.
  In 2020, the national output of dry dairy products is 1.8095 million tons, a year-on-year decrease of 3.09%
   According to the National Bureau of Statistics, the national dry dairy product output in 2020 was 1.809 million tons, a year-on-year decrease of 3.09%, of which the output in December was 168,500 tons, an increase of 4.19%year-on-year.
  The national milk powder output in 2020 is 1.0123 million tons, a year-on-year decrease of 9.43%
   According to the National Bureau of Statistics, the national milk powder output in 2020 was 1.0123 million tons, a year-on-year decrease of 9.43%, of which the output in December was 105,000 tons, a year-on-year decrease of 1.41%.
  In 2020, the national dairy processing industry’s sales revenue was 419.558 billion yuan, an increase of 6.22%, and the total profit was 39.485 billion yuan, an increase of 6.10%
   According to data from the National Bureau of Statistics, there are 572 companies that entered the statistical scope from January to December 2020, which is the same as the data from January to November. Among them, there are 125 loss-making companies, which is 5 more than the data from January to November, and the proportion of losses is 21.9%; the main business income of dairy enterprises above designated size was 419.558 billion yuan, a year-on-year increase of 6.22%; the total profit was 39.485 billion yuan, a year-on-year increase of 6.10%, the total profit growth rate turned positive, and the sales profit rate was 9.41%, an increase of 0.84 compared to the data from January to November Percentage points.
  3. Dairy business dynamics
   Yili subsidiary’s 1.6 billion acquisition of Zhongdi Dairy was completed, and it participated in the creation of the National Dairy Technology Innovation Center in Hohhot; Mengniu’s Jiaozuo 5G smart factory was completed and put into production; Wandashan and Jiangnan University signed a strategic cooperation agreement to build an innovation laboratory; Run Dairy invested 46.09 million yuan in its wholly-owned subsidiary Tangwangcheng Co., Ltd. to expand its production capacity; Mingyi launched the pasteurized milk market; Manor Farm intends to cooperate with Tianmu Dairy to strengthen the stable supply of high-quality milk sources, and transfer 427 million yuan of shares to Gansu Land Reclamation.
  4. Overview of dairy products import
  In December 2020, imports of milk powder and condensed milk dropped significantly year-on-year, while imports of other dairy products increased; in 2020, milk powder, condensed milk, yogurt, and infant formula dropped year-on-year, and fresh milk imports exceeded one million tons, a record high
  According to the data of the General Administration of Customs, in December 2020, imports of industrial milk powder and condensed milk decreased year-on-year, while imports of other dairy products increased year-on-year. Imports of industrial milk powder were 77,600 tons, a year-on-year decrease of 17.4%, and infant formula milk powder imports were 28,600 tons. , A year-on-year increase of 13.7%, fresh milk (pasteurized milk and UHT milk) imported 118,400 tons, a year-on-year increase of 56.9%, whey imports 58,800 tons, a year-on-year increase of 34.5%; from January to December, industrial milk powder imports of 979,300 tons, A year-on-year decrease of 3.5%, the import of infant formula milk powder was 335,600 tons, a year-on-year decrease of 2.8%, and the import of fresh milk was 1.0398 million tons, a year-on-year increase of 16.8%, a record high.
  5. International market

  The price of milk powder in the international market has risen
   In January 2021, GDT two online auctions, the price index of milk powder all rose, and skimmed milk powder rose even more. Compared with the last auction, the 275th auction held on January 5, skimmed milk powder auction price 3,044 US dollars/ton, the price index rose 4.1%; whole milk powder 3,306 US dollars/ton, the price index rose 3.1%. In the 276th auction held on January 19, skimmed milk powder was US$3,243/ton, the price index rose by 7.0%; whole milk powder was US$3,380/ton, the price index rose 2.2%.
  

  Milk production
  1. Production of fresh milk

   National Bureau of Statistics:Milk production in 2020 is 34.4 million tons, an increase of 7.5%
   According to the analysis of the economic situation of the National Bureau of Statistics in 2020, my country’s milk production will be 34.4 million tons in 2020, an increase of 7.5%.

  2. Fresh milk market
  Figure2-1 National weekly price monitoring of fresh milk by the Ministry of Agriculture and Rural Affairs
  2016.01-20201.01
China Dairy Economy Monthly Report February 2021image
  Table2-1 The Ministry of Agriculture and Rural Affairs monitors 10 major dairy cow producing provinces (districts)
   average price of fresh milk
China Dairy Economy Monthly Report February 2021image(1)
  The reference price of Shaanxi’s first quarter of 2021 fresh milk transaction price is 4.15 yuan/kg
   On January 16, the Shaanxi Dairy Association held the”First Quarter 2021 Fresh Milk Price Consultation Conference and Current Dairy Market Situation Seminar” in Xi’an. Based on the current implementation of the raw milk price in Shaanxi Province and the pre-judgment of the market conditions in the first quarter, the meeting determined that the reference price of the province’s raw milk transaction in the first quarter of 2021 is:the benchmark price of 4.15 yuan/kg. On the basis, it can fluctuate up and down by 5%. Encourage high-quality and competitive prices.
  Shandong 2021 first quarter raw milk transaction reference price 4.10 yuan/kg
  According to the Announcement No. 5 [2021] of the Shandong Provincial Bureau of Animal Husbandry and Veterinary Medicine, the reference price of raw milk trading in Shandong Province in the first quarter of 2021 is 4.10 yuan/kg.
   The parties involved in the production and purchase of fresh milk shall negotiate and determine the actual purchase price of fresh milk based on the reference price of the transaction, in accordance with the principles of conformity between quality and price, price on the basis of quality, and high-quality and superior price.
  3. Feed ingredients

   The domestic corn price in January 2021 will increase by 7.4%month-on-month
  Monitoring data from the Ministry of Agriculture and Rural Affairs shows that the national average monthly price of corn in January 2021 is 2.82 yuan/kg, a month-on-month increase of 7.4%and a year-on-year increase of 34.7%. The average price of corn in the three northeastern provinces in the main producing area was 2.64 yuan/kg, an increase of 6.9%month-on-month; the price of Guangdong, the main selling province, was 2.98 yuan/kg, an increase of 7.1%month-on-month.
  In January 2021, domestic soybean meal prices rose 9.5%month-on-month
   Rural monitoring data from the Ministry of Agriculture show that in January 2021, the national monthly average price of soybean meal was 3.79 yuan/kg, an increase of 9.5%month-on-month and an increase of 17.0%year-on-year.
  

   Milk source base construction
  1. Large-scale pasture construction project

   There are 13 large-scale dairy farms in Wuwei, Gansu, with 41,000 heads in stock
  After the introduction of Yili Group, the dairy farming industry in Wuwei City, Gansu Province developed rapidly. In 2020, Wuwei City will introduce 10 dairy farms with a total design size of 72,000 heads, including Inner Mongolia and Ningxia, which have been basically completed. There are already 5 dairy farms with 13,000 heads of dairy cattle. At present, there are 13 large-scale pastures in the city, with 41,000 dairy cows and a daily production of more than 290 tons of fresh milk. Newly added 100,000 mu of high-quality forage grass, reaching 850,000 mu, and silage of 640,000 tons, an increase of 150,000 tons.
  Ningxia Lingwu:52 large-scale pastures, and the number of dairy cows increased by 60,000 in 3 years
   In recent years, Lingwu City in Ningxia has built a modern Lingwu breeding base with high standards in Baitugang Township. As of December 2020, there are 52 large-scale dairy farming companies, and the number of dairy cows has increased from 18,000 at the beginning of 2018 to 78,000 at the end of 2020, with an average daily milk production of 900 tons. It is estimated that by the end of 2021, the stock will reach 150,000 heads, with a daily output of 2,000 tons of fresh milk.
  four

  dairy processing
  1. Dairy product output

   The national liquid milk production in 2020 will be 25,994,300 tons, a year-on-year increase of 3.28%
   According to the National Bureau of Statistics, the national liquid milk production in 2020 was 25,994,300 tons, an increase of 3.28%year-on-year, of which the December output was 2,342,800 tons, a year-on-year decrease of 2.30%.
   For the whole year of 2020, among the top 10 provinces in terms of liquid milk production, 6 provinces had a positive year-on-year increase, totaling 17.697,800 tons, an increase of 3.42%year-on-year, accounting for 68.08%of the country’s total output, and Hebei’s output of 3,475,600 tons, a year-on-year increase 2.32%, accounting for 13.37%of the country’s total output, ranking first in the country. The total output of these 10 provinces in December was 1.609 million tons, a year-on-year decrease of 2.00%, accounting for 68.72%of the month’s total output. Hebei’s output was 324,000 tons, an increase of 6.46%year-on-year, accounting for 13.83%, ranking first in the country.
  Table4-1 National and main producing provinces liquid milk production from January to December 2020
  Unit:10,000 tons
China Dairy Economy Monthly Report February 2021image(2)
  Note:The output statistics of dairy companies above designated size (annual sales of 20 million yuan and above) show that the number of companies varies from year to year.
  Figure4-1 National monthly production of liquid milk, 2019~2020
China Dairy Economy Monthly Report February 2021image(3)
  Figure4-2 National annual output of liquid milk, 2000~2020
China Dairy Economy Monthly Report February 2021image(4)
  In 2020, the national output of dry dairy products is 1.8095 million tons, a year-on-year decrease of 3.09%
   According to the National Bureau of Statistics, the national dry dairy product output in 2020 was 1.809 million tons, a year-on-year decrease of 3.09%, of which the output in December was 168,500 tons, an increase of 4.19%year-on-year.
   For the whole year of 2020, among the top 10 provinces for dry dairy product output, 5 provinces each have a positive or negative year-on-year growth. Among them, Hunan’s output has been adjusted to exit the top 10, Jiangsu’s output has entered the top 10, and the total output of the 10 provinces 1.4672 million tons, down 5.20%year-on-year, accounting for 81.08%of the country’s total output. Heilongjiang’s output was the highest, 410,500 tons, an increase of 5.44%year-on-year, accounting for 22.69%of the country’s total output. The total output of these 10 provinces in December was 138,000 tons, an increase of 5.78%year-on-year, accounting for 81.92%of the total output in December, and the output of Heilongjiang was 42,000 tons, an increase of 48.30%year-on-year, accounting for 24.95%, ranking first.
  Table4-2 National and major producing provinces dry dairy production output from January to December 2020
  Unit:10,000 tons
China Dairy Economy Monthly Report February 2021image(5)
  Note:The output statistics of dairy companies above designated size (annual sales of 20 million yuan and above) show that the number of companies varies from year to year.
  Figure4-3 National monthly output of dry dairy products, 2019~2020
China Dairy Economy Monthly Report February 2021image(6)
  Figure4-4 National annual output of dry dairy products, 2000~2020
China Dairy Economy Monthly Report February 2021image(7)
  The national milk powder output in 2020 is 1.0123 million tons, a year-on-year decrease of 9.43%
   According to the National Bureau of Statistics, the national milk powder output in 2020 was 1.0123 million tons, a year-on-year decrease of 9.43%, of which the output in December was 105,000 tons, a year-on-year decrease of 1.41%.
   For the whole year of 2020, among the top 5 provinces in milk powder production, 3 provinces have increased year-on-year. The 5 provinces totaled 793,200 tons, a year-on-year decrease of 9.67%, accounting for 78.36%of the country’s total output, and Heilongjiang’s output was the first with 401,000 tons. A year-on-year increase of 3.02%, accounting for 39.52%of total output. The total output of these five provinces in December was 81,400 tons, an increase of 1.98%year-on-year, accounting for 80.14%of the total output in December.
  Table4-3 January-December 2020 national milk powder output and major producing provinces
  Unit:10,000 tons
China Dairy Economy Monthly Report February 2021image(8)
  Figure4-5 National monthly milk powder output, 2019~2020
China Dairy Economy Monthly Report February 2021image(9)
  Figure4-6 National annual output of milk powder, 2008~2020
China Dairy Economy Monthly Report February 2021image(10)
  2, economic indicators

   The sales revenue of the national dairy processing industry in 2020 is 419.558 billion yuan, an increase of 6.22%, and the total profit is 39.485 billion yuan, an increase of 6.10%
   According to data from the National Bureau of Statistics, there are 572 companies that entered the statistical scope from January to December 2020, which is the same as the data from January to November. Among them, there are 125 loss-making companies, which is 5 more than the data from January to November, and the proportion of losses is 21.9%.
   In 2020, the main business income of dairy enterprises above designated size was 419.558 billion yuan, an increase of 6.22%year-on-year; the total profit was 39.485 billion yuan, an increase of 6.10%year-on-year, the total profit growth rate turned positive, and the sales profit rate was 9.41%, compared with January-November The data increased by 0.84 percentage points.
  Table4-4 National Dairy Processing Industry Economic Indicators from January to December 2020
  Unit:100 million yuan
China Dairy Economy Monthly Report February 2021image(11)
  3. Key dairy companies

   Yili Subsidiary’s 1.6 billion acquisition of Zhongdi Dairy is completed
   On January 12, Yili issued an announcement stating that its subsidiary Wholesome and Zhongdi Dairy completed the equity delivery on January 11. After the completion of the settlement, Wholesome will directly hold 1.141 billion shares of Zhongdi Dairy, accounting for 43.75%of the issued share capital of Zhongdi Dairy, and become its controlling shareholder. The price of this general offer is 1.132 Hong Kong dollars per share, and the total consideration is 1.659.7 billion Hong Kong dollars.
  The acquisition of Zhongdi Dairy is a signal for Yili to seize the upstream market. It can increase Yili’s raw milk self-sufficiency rate to a certain extent and help ease the pressure of rising costs.
  Yili participated in the creation of the National Dairy Technology Innovation Center in Hohhot
   On January 21, it was learned from the Science and Technology Bureau of Hohhot that the city will start the establishment of the National Dairy Technology Innovation Center.
   A special class for the establishment of the National Innovation Center was jointly established by the Hohhot Municipal Science and Technology Bureau, Inner Mongolia Dairy Technology Research Institute and Yili Group, which is responsible for the establishment of the National Dairy Technology Center.
   In accordance with the requirements of the Inner Mongolia Autonomous Region’s Science and Technology Department and the Department of Finance, the”Notice on Launching the Implementation of the Key Special Project of”Science and Technology”, the Autonomous Region allocates”Technology to Invigorate Mongolia”-after the National Dairy Technology Innovation Center special fund of 50 million yuan , Hohhot municipal government matched special funds of 50 million yuan, and Yili Company matched 230 million yuan of funds, forming a key special construction fund with a total investment of 330 million yuan. In response to the current development and problems of my country’s dairy industry, focusing on the construction goals of 5 research centers and 3 platforms, 14 scientific research topics have been condensed and put forward as the key special projects of the”Science and Technology Rejuvenation” after enterprise declarations, expert reviews, and focus on high-quality pasture planting, Research on common key technologies in dairy cattle breeding and breeding, dairy nutrition and health, dairy production technology and technology, dairy safety and inspection, and protection of intellectual property rights in the dairy industry.
  Mengniu Jiaozuo 5G smart factory completed and put into production
   On the morning of January 8, Mengniu’s tens of billions of clusters? Jiaozuo 5G Smart Factory (Phase 4 Project of Mengniu Jiaozuo Company) held a completion and commissioning ceremony. This is currently Mengniu’s most technologically advanced “digital and intelligent chemical factory” in the country, marking Mengniu leads China’s dairy industry into the 5G era.
   Mengniu 10 billion cluster? Jiaozuo 5G Smart Factory has a total investment of 1.5 billion yuan and currently has 11 production lines, mainly producing sterilized milk, modulated milk, milk beverages, and fermented yogurt.
  Wandashan and Jiangnan University signed a strategic cooperation agreement to jointly build an innovation laboratory
   On January 8, Beidahuang Wandashan Dairy Co., Ltd. and Jiangnan University formally signed a strategic cooperation agreement. In the future, the two parties will jointly establish a collaborative innovation laboratory and carry out in-depth exchanges and cooperation in personnel training, scientific research, and product development.
   It is reported that the collaborative innovation laboratory jointly established by Wandashan Dairy and Jiangnan University will focus on the food discipline of Jiangnan University and integrate the strengths of various schools and enterprises to conduct breast milk research, milk fat deep processing and functional lipids in China. Carry out a full range of long-term research cooperation in development and other fields.
  Tianrun Dairy has invested 46.09 million yuan in its wholly-owned subsidiary Tangwangcheng to expand production capacity
   On January 6, Tianrun Dairy issued an announcement that it intends to invest 46,085,500 yuan in its wholly-owned subsidiary Xinjiang Tianrun Dairy Tangwangcheng Dairy Co., Ltd., of which 32.5 million yuan will be invested in the purchase of production equipment, accounting for 70.52 of the total investment.%, it will increase the annual production capacity of 4,500 tons of dairy products after it is put into production.
   Tangwangcheng Company was established in 2019. It is a wholly-owned subsidiary established by Tianrun Dairy with an investment of 10 million yuan. The annual production capacity of dairy products is about 30,000 tons. At present, Tangwangcheng Company’s project construction is nearing completion, but it has not yet officially started operations. After the capital increase, the annual production capacity of Tangwangcheng’s dairy products will increase by 4,500 tons.
   Regarding the capital increase and production expansion to its subsidiaries, Tianrun Dairy believes that it will help enrich the company’s existing product categories, and at the same time, it will help the company develop the high-end liquid milk market and further increase product competitiveness and market share.
  Mingyifali Pasteur Milk Market
   On January 1, Mingyi officially released”Tianlai Ranch Ecological Fresh Milk”, which was Mingyi’s first launch of fresh milk products.
   In order to produce high-quality ecological fresh milk, Mingyi chose Jianning, a national ecological county, to build a large-scale, complete and highly modern alpine ecological pasture. The eco-friendly milk is safe and secure.
  Manor Farm intends to cooperate with Tianmu Dairy to strengthen the stable supply of high-quality milk
   On January 15, Manor Ranch disclosed an announcement on the expected daily connected transactions for 2021. The company intends to conduct daily connected transactions with the related party Gansu Nongken Tianmu Dairy Co., Ltd. The estimated amount of connected transactions for 2021 is 200 million yuan. The current proposal It has been approved by the Manor Ranch Board of Directors.
   The announcement stated that the company’s daily processing of 600 tons of liquid milk transformation and expansion project implemented by the company with its own funds was completed and accepted and put into operation in May 2020. The company’s dairy production capacity has increased to a certain extent compared with the previous one, and it is used for daily production. Demand for raw milk has increased. The expected items of this related party transaction are to meet the actual needs of the company’s normal operations and help improve the company’s operating income, net profit and other operating performance.
  The 427 million yuan shares of the manor and ranch were transferred to Gansu Nongken
   On January 24, Manor Ranch issued an announcement stating that the company’s controlling shareholder and actual controlling person, Ma Hongfu, and natural person Hu Kaisheng intend to transfer all 32 million shares of Manor Investment Co., Ltd. held by them to Gansu Provincial Agricultural Reclamation Group Co., Ltd. Responsible company, the transaction price is about 427 million yuan.
   After the completion of the transfer, Ma Hongfu’s share of the manor ranch will be reduced to 20.2%(including personal shareholding and indirect shareholding through Gansu Funiu Investment Co., Ltd.); Gansu Nongken Group will hold 100%of the manor investment Equity, indirectly holds 30,894,700 shares of the manor ranch, accounting for 13.22%of the total share capital of the manor ranch.
   In addition, on December 25, 2020, Gansu Nongken Group also subscribed through its wholly-owned subsidiary for approximately 37.9317 million non-publicly issued shares of Manor Ranch, accounting for 16.23%of the total share capital of Manor Ranch.
   If this share transfer is successfully completed, Gansu Nongken Group will hold approximately 68,826,400 shares of the manor ranch, accounting for 29.45%of the total share capital of the manor ranch, and become the controlling shareholder of the manor ranch.